THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Saturday, July 20, 1996 TAG: 9607200251
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY DAVE MAYFIELD, STAFF WRITER
LENGTH: 32 lines
Dominion Resources Inc., the Richmond-based parent of Virginia Power, said Friday that its second-quarter net income rose 21 percent from the year before.
It said hotter weather this year meant more air-conditioning use, and thus higher power sales. Dominion said massive job cuts at Virginia Power also helped the bottom line by reducing operating costs.
Net income for the latest quarter was $94.2 million, or 53 cents a share, up from $78.1 million, or 45 cents a share, in the same period of 1995. The profit increase came on a 7 percent increase in revenues to $1.1 billion in the latest period.
Dominion said its profit rise was even greater when it excluded an extraordinary charge of $19.3 million to pay for severances and other costs associated with layoffs at Virginia Power.
Dominion said it expects Virginia Power to keep cutting jobs all year, resulting in further restructuring costs. Already, about 1,400 jobs have been cut at the utility since early last year.
Operating earnings rose 40 percent, to the equivalent of 60 cents a share this year vs. 43 cents a share in the 1995 second quarter.
Virginia Power contributed the lion's share of the operating profit in the latest period: the equivalent of 56 cents per share, up from 39 cents last year. Meanwhile, Dominion's non-utility subsidiaries, which range from mutual funds to real estate development, proved lackluster. Their contribution toward operating earnings per share remained unchanged at 4 cents. by CNB